May I keep my home after filing bankruptcy in Englewood, CO?
When a bankruptcy petition is filed, all the debtor’s assets and debts are listed. This includes the debtor’s home and the debt. Whether the debtor may keep the home depends upon:
- The status of the payments. This brings about questions such as: is the debtor in payments of the mortgage? If so, in chapter 7 bankruptcy, in order to keep the home, the debtor must get current payments and continue to pay, on time every month therefore. If the debtor is behind in payments, and cannot get caught up, then chapter 13 bankruptcy may be used to pay missed payments over a period of three to five years. If missed payments can be brought current over three to five years, then the debtor must start paying the regular mortgage payment each month on time.
- The equity in the home. A homestead exemption may apply to protect the equity of the home. For debtors who have lived in Colorado for at least two years, a homestead exemption of $60,000 is available, and $90,00 is available if a person is over 60 years old, or disabled. If there is equity in excess after the exemption, chapter 7 states that the trustee must pay the excess, or he will sell the home and pay the excess amount to the creditors. In a chapter 13, any excess equity in the home will be paid to the trustee over a period of three to five years.
According to, Foreclose Data Bank, there is currently over 427 homes advertised as, “deep discounts, unbeatable prices on Englewood homes.” There are houses ranging from $50,000 – multi-million dollar mansions.
One must carefully assess the need to keep a house in bankruptcy versus the potential costs, and be guided by an experienced bankruptcy attorney to see if there are any other considerations. Contact us today at Taggart Law Offices for a free consultation and start looking at your options towards a debt free future.